Hospitality Revenue Management -Exam With Well
Detailed Question & Answers Perfectly A+ Graded
Newest Updated Versions
Revenue management is the act of directing sources of income within the confines of
ANSWER>>>>-capacity, supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR?
ANSWER>>>>-Controllable expenses
Name revenue optimization strategies ANSWER>>>>-Market segmentation, Duration
control , BAR (Best Available Rate)
Legoherel, Poutier, & Fyall point out that revenue optimization is not only about product
versioning, distribution channel selection, and pricing, but also ANSWER>>>>-careful
selection of the most profitable customers
The net value achieved by a seller and a buyer in a business transaction ANSWER>>>>-
Profit
1
,A Barter System is a ANSWER>>>>-Trading system in which goods and services are
exchanged without the use of money.
The area of study concerned with the production, consumption, and transfer of wealth is called
ANSWER>>>>-Economics
The purpose of successful hospitality businesses is to ANSWER>>>>-Provide profits to its
customers and increase their wealth.
The individual or team responsible for ensuring that a company's prices match a customer's
willingness to pay. ANSWER>>>>-Revenue Manager(s)
A revenue management philosophy that places customer gain ahead of short term revenue
maximization in revenue management decision making is called ANSWER>>>>-
Customer-Centric Revenue Management
A source of business customers or vehicle used to communicate with a source of customers is
called a ANSWER>>>>-Channel/Distribution Channel
Constrained Supply is the condition that exists when ANSWER>>>>-Sellers cannot
readily increase the amount of products or services available for sale when consumer demand
for them increases
What is the difference between a Hard Constraint and a Soft Constraint? ANSWER>>>>-
Hard Constraint: a supply constraint that cannot be removed, regardless of product demand. Ex:
hotel rooms, capacity of natural gas pipelines
2
,Soft Constraint: a supply constraint that can, with sufficient lead time, and/or reasonable
expense, be removed or lessened. Ex:
A demand based revenue management strategy, first initiated by commercial airline companies.
It seeks to maximize income via manipulation of selling prices. ANSWER>>>>-Yield
Management
Accepting reservations for more rooms than a hotel has available or in inventory is known as
ANSWER>>>>-Overbooking/Overselling
A group of similar and directly competing lodging properties to which an individual hotel's
operating performance is compared is called ANSWER>>>>-Competitive Set
A Market Segment is ANSWER>>>>-A subset of a customer group that can be readily
identified by one or more common, but individual customer characteristics. Ex: Income, gender,
or purpose of travel.
A summary report describing the amount of future demand for a lodging property's rooms or
services and the rate at which that business is bung captured is called a ANSWER>>>>-
Pace Report
Rack Room Rates are ANSWER>>>>-The price of rooms when no discounts of any type
are offered to guests purchasing the rooms
The advertising and promotion of travel and tourism activities in a specifically designated
geographic area is called ANSWER>>>>-Destination Marketing
3
, A Target Market consists of ANSWER>>>>-Potential customers to whom a business'
marketing activities and message are directed.
Price is a measure of ANSWER>>>>-The value given up (exchanged) by a buyer and a
seller in a business transaction.
In the consumer's mind, value for the product is equivalent to ANSWER>>>>-perceived
benefit minus the price
The minimal sales point is equivalent to ANSWER>>>>-the dollar sales volume at the
break even point (revenue - cost = 0)
If the quality of the product increases and price decreases, value for the customer
ANSWER>>>>-increases
If the service increases and price decreases, value for the customer ANSWER>>>>-
increases
Match the product sold with the pricing terminology
Guest rooms
4
Detailed Question & Answers Perfectly A+ Graded
Newest Updated Versions
Revenue management is the act of directing sources of income within the confines of
ANSWER>>>>-capacity, supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR?
ANSWER>>>>-Controllable expenses
Name revenue optimization strategies ANSWER>>>>-Market segmentation, Duration
control , BAR (Best Available Rate)
Legoherel, Poutier, & Fyall point out that revenue optimization is not only about product
versioning, distribution channel selection, and pricing, but also ANSWER>>>>-careful
selection of the most profitable customers
The net value achieved by a seller and a buyer in a business transaction ANSWER>>>>-
Profit
1
,A Barter System is a ANSWER>>>>-Trading system in which goods and services are
exchanged without the use of money.
The area of study concerned with the production, consumption, and transfer of wealth is called
ANSWER>>>>-Economics
The purpose of successful hospitality businesses is to ANSWER>>>>-Provide profits to its
customers and increase their wealth.
The individual or team responsible for ensuring that a company's prices match a customer's
willingness to pay. ANSWER>>>>-Revenue Manager(s)
A revenue management philosophy that places customer gain ahead of short term revenue
maximization in revenue management decision making is called ANSWER>>>>-
Customer-Centric Revenue Management
A source of business customers or vehicle used to communicate with a source of customers is
called a ANSWER>>>>-Channel/Distribution Channel
Constrained Supply is the condition that exists when ANSWER>>>>-Sellers cannot
readily increase the amount of products or services available for sale when consumer demand
for them increases
What is the difference between a Hard Constraint and a Soft Constraint? ANSWER>>>>-
Hard Constraint: a supply constraint that cannot be removed, regardless of product demand. Ex:
hotel rooms, capacity of natural gas pipelines
2
,Soft Constraint: a supply constraint that can, with sufficient lead time, and/or reasonable
expense, be removed or lessened. Ex:
A demand based revenue management strategy, first initiated by commercial airline companies.
It seeks to maximize income via manipulation of selling prices. ANSWER>>>>-Yield
Management
Accepting reservations for more rooms than a hotel has available or in inventory is known as
ANSWER>>>>-Overbooking/Overselling
A group of similar and directly competing lodging properties to which an individual hotel's
operating performance is compared is called ANSWER>>>>-Competitive Set
A Market Segment is ANSWER>>>>-A subset of a customer group that can be readily
identified by one or more common, but individual customer characteristics. Ex: Income, gender,
or purpose of travel.
A summary report describing the amount of future demand for a lodging property's rooms or
services and the rate at which that business is bung captured is called a ANSWER>>>>-
Pace Report
Rack Room Rates are ANSWER>>>>-The price of rooms when no discounts of any type
are offered to guests purchasing the rooms
The advertising and promotion of travel and tourism activities in a specifically designated
geographic area is called ANSWER>>>>-Destination Marketing
3
, A Target Market consists of ANSWER>>>>-Potential customers to whom a business'
marketing activities and message are directed.
Price is a measure of ANSWER>>>>-The value given up (exchanged) by a buyer and a
seller in a business transaction.
In the consumer's mind, value for the product is equivalent to ANSWER>>>>-perceived
benefit minus the price
The minimal sales point is equivalent to ANSWER>>>>-the dollar sales volume at the
break even point (revenue - cost = 0)
If the quality of the product increases and price decreases, value for the customer
ANSWER>>>>-increases
If the service increases and price decreases, value for the customer ANSWER>>>>-
increases
Match the product sold with the pricing terminology
Guest rooms
4
